Primary funding comes from federal HOME money. HOME gives grants to state and local governments to build affordable housing for low-income families. HOME is a federal Housing and Urban Development (HUD) agency that earmarks $2 billion annually to help states and other localities increase affordable housing.
Through HOME funding, municipal housing trust money from Burlington Township, and a mortgage from the New Jersey Housing and Mortgage Finance Agency, nonprofit developer Moorestown Ecumenical Neighborhood Development (MEND) partnering with Conifer Realty LLC of Mount Laurel will be able to purchase and rehabilitate an old schoolhouse and turn it into affordable housing units. Rent on the units will range from $225 to $750 per month.
HOME funding enables developers to apply for federal tax credits, which act as incentives to get the private market to invest in affordable housing projects. The investments raise capital for the building projects which means less money is needed to borrow. This allows developers to offer more affordable rents.
For more information, visit www.hud.gov/offices/cpd/affordablehousing/programs/home
